Real Estate Successions

Over the years I have come across a number of situations where the heirs to a real estate succession based the property value solely on the appraised value of a home. . . and one heir ended up buying the property based on that appraisal.

Caution:  When buying a home, whether on the open market or from a loved one’s estate, you must treat the transaction as an independent real estate purchase. Besides an appraisal, you must do your due-diligence and have home inspections done.

I recently had a client who, working through a real estate succession, bought out her husband’s children (from a prior marriage) based entirely on the appraised value of the home. No inspections. She assumed because she lived in the home, she knew all its quirks. However, several years later when she decided to downsize, she discovered her house was not in as good a condition as she thought it was.

When the first buyer had a home inspection done, there was a long laundry list of things like flashing around the chimney and flues, an undersized chimney cap, a broken a/c vent that was leaking air into the attic, no GFI outlets in the kitchen or baths, settling, etc, etc. But the worse was when the home inspection revealed termites eating out the hip rafters over the garage. Needless to say the buyer walked away.

$25,000 later, the house had been treated, the garage roof had been removed, hip rafters replaced, and the house put back together. It was now ready for the next buyer.

There were several more buyers who rejected the house after the initial home inspection, but one buyer liked the house enough to buy it anyway. Then came the killer – he had a sewer inspection done and discovered multiple breaks in the sewer line under the slab. (This home was in Jefferson Parish where this sort of thing is not uncommon.)  Again the buyer walked.

Now that the seller knew about the sewer issues, she MC900059449acould not put the genie back in the bottle. . .  it had to be included on the property disclosures.  And knowing that she could never sell a house with busted sewer lines, she had to do these repairs also – another $11,000!

While the sewer work was being done, another buyer came along who fell in love with the house, and was actually reassured knowing the home had all new plumbing underneath. However, he was concerned about the 5-1/2” slope in the slab. . . something my seller thought was just normal settling. The buyer hired a shoring company to give him an estimate to level the house. A whopping $17,000!

1 HouseNeedless to say the seller took a beating on the sale of her home. She cut her losses (and price) and let the buyer have the house at a bargain. She simply did not have another $17,000, nor the additional funds to cover the sheetrock repairs that often follow a house leveling.

Would my homeowner have bought the house from the heirs at the appraised value had she known the house had all these hidden problems? Not likely.

Unfortunately, real estate successions are handled by attorneys who don’t always think like Realtors – they don’t suggest various types of home inspections. Had this lady’s attorney done so, she no doubt would have based her decision on ALL the facts, not just an appraisal.

In the end, the homeowner ended up taking a sizable loss on the sale of her home. Not only did she have to put out $36,000 in repairs just to sell her house, she had to lower her price because of the slab issues. All in all, it was a very disappointing experience.

Sig photo2 8-18

About Joyce Albert

Why you need a Real Estate Consultant, not just another Agent… The difference between a real estate agent and a real estate consultant is the difference between someone who just wants to make a sale, and a professional who is willing to share with you their in-depth knowledge of the market in order to help you navigate one of the largest financial decisions of your lifetime. In my career as a real estate consultant, putting my clients first is the hallmark of my success. So if you are looking for a true professional to help you buy or sell a home in the Greater New Orleans Area, please contact me. I look forward to woing with you. Certified 203k Specialist I am a certified FHA-203k Specialist - a program designed to assist buyers wanting to purchase distressed properties (hurricane damaged, repos, short sales) that require repairs or major rehab. Accredidations -  Accredited Buyer Representative (ABR)  e-Certified  Short-Sale & Foreclosure Certified (SFR) Other Memberhips. . .  Louisiana Association of Realtors  New Orleans Metropolitan Assn of Realtors (NOMAR)  Gulf South Real Estate Information Network  National Assn of Realtors (NAR) of Realtors (NAR)  Real Estate Board of Accredited Buyer Consultants (REBAC)
This entry was posted in Real Estate Information and tagged , , , , , , , , , , , . Bookmark the permalink.

7 Responses to Real Estate Successions

  1. Tradelines1 says:

    Simply wish to say your article is as surprising. The clearness for your put up is simply spectacular and that i could assume you’re an expert in this subject. Well along with your permission allow me to snatch your RSS feed to keep up to date with forthcoming post. Thank you one million and please keep up the gratifying work.


  2. simply click the up coming website says:

    You should participate in a contest for the most effective blogs on the web.
    I will advocate this web site!


  3. instant loans says:

    I really like looking through an article that will make men and women think.
    Also, thanks for allowing for me to comment!


  4. übersetzung says:

    Can I just say what a relief to uncover someone that truly understands what they’re talking about online. You actually know how to bring an issue to light and make it important. More people have to look at this and understand this side of the story. I was surprised that you’re not more popular since you certainly have the gift.


  5. seo ultimate says:

    I comment whenever I especially enjoy a post on a site or I have something to add to the discussion.
    It is caused by the sincerness displayed in the article I looked at.
    And after this article Real Estate Successions | St Tammany Real Estate Information.
    I was moved enough to create a comment 😉 I do have a few questions for you if it’s
    allright. Could it be just me or does it give the impression like some of these comments look as if they are written by brain dead visitors? 😛 And, if you are posting on other social sites, I’d like to follow everything new you have to post. Could you list the complete urls of your communal pages like your Facebook page, twitter feed, or linkedin profile?


  6. first time home buyers says:

    Wow! This blog looks just like my old one! It’s
    on a entirely different topic but it has pretty much the same page layout and design.
    Outstanding choice of colors!


  7. minecraft says:

    Pretty nice post. I just stumbled upon your weblog
    and wanted to say that I’ve really enjoyed surfing around your blog posts.
    After all I’ll be subscribing to your feed and I hope you
    write again very soon!


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s